Detroit Auto Show May Move From Aged Venue
Political considerations are weighing in on who controls Detroit's aged Cobo Center. If something isn't settled soon, the North American International Auto Show could pull up stakes and move elsewhere.
The Cobo Center in downtown Detroit is conveniently located,
just a short walk from GM's world headquarters and across the river from Windsor, Ontario. The most important event held at the center each year is the North American International Auto Show (NAIAS), a January event that brings hundreds of millions of dollars and thousands of people downtown over a two week period.
Too Small To Host The Detroit Auto Show
The center is also woefully outdated, much too small to hold the show and in need of both repairs and expansion. The city of Detroit is financially limited when it comes to making these changes which, if put off much longer, could cause the city to lose one of the most important auto shows in the world. True, the Detroit Auto Show could live on in much smaller form, but the NAIAS could easily transfer to another city, such as Chicago or Los Angeles, locations which have modern and expansive facilities already in place.
The state of Michigan has set aside money to fund the Cobo Center's expansion, but those funds are contingent upon the city relinquishing control of the facility to the three counties that make up the Detroit metropolitan area. Unfortunately, the city of Detroit doesn't want to set aside its control even though doing so would mean a $20 million cash payment for the facility in addition to no longer being responsible for $15-20 million in repairs and maintenance annually.
City, County And State Leaders Make Their Cases
State and regional representatives from Oakland, Wayne and Macomb counties approved a $299 million bond to pay for the Cobo Center's update and expansion. However, if the city doesn't go along with the proposal, then the government may take $135 million to expand the new Rock Financial Showplace in Novi, Michigan. Novi is located in Oakland county while the city of Detroit is located in Wayne county. All three counties would benefit from an expanded facility no matter which location is selected.
If the city cannot get its act together and the Novi plan falls through, the committee organizing the NAIAS has threatened to make the 2010 NAIAS the last one held in Michigan. The NAIAS is giving lawmakers until July 1st to come up with a plan, one that will have the show hosted in 2011 in a newer or updated facility no matter where it is located.
